Surging health care stocks lifted the Dow Jones Industrial Average on Thursday above 27,000 for the first time as the White House backtracked on a proposed rule to eliminate rebates that flow from drugmakers to middleman pharmacy benefit managers.
The Dow and S&P 500 rose on Thursday to close at record highs as health insurers gained after the Trump administration scrapped a plan created to rein in prescription drug prices, while financial shares climbed with bond yields.
Canada's main stock index fell on Friday, weighed down by losses in the technology, materials and financial sectors. JPMorgan Chase, Wells Fargo and Goldman Sachs will report their results on Tuesday.
Bond prices rose. The yield on the 10-year Treasury fell to 2.11%.
The S&P 500 is up 493.06 points, or 19.7%.
Germany's DAX edged 5.68 points higher to 12,337.80 while the CAC 40 in France surged 0.6% to 5,585.27. The Nasdaq Composite Index rose 48.10 points, or 0.59 percent, to 8,244.14.
The Dow Jones Industrial Average rose 243.95 points, or 0.90 percent, to 27,332.03.
Chipmakers including Intel rose.
The S&P 500 rose 6.84 points, or 0.2%, to 2,999.91. The Nasdaq added 29 points, or 0.4%, to 8,225.More news: It had everything - Federer ranks Nadal classic as one of the best
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Previously, Treasury yields had crept up marginally after data showed the biggest gain in USA underlying consumer prices in 1-1/2 years.
Stocks are opening higher again on Wall Street led by more gains in technology companies.
The index rose 1.7 percent for the 12 months ended in June, the lowest rate of increase since it advanced 1.7 percent in January 2017, dragged down by the 3.1-percent drop in the index for energy for the month.
Delta Air Lines rose 0.6% after reporting that its second-quarter profit jumped 39%, beating Wall Street's forecasts.
"The markets were higher at the beginning of the day based on Powell's testimony and him confirming what the futures markets have been telling us for a whole month: That we were going to get a rate cut", said Randy Frederick, vice president of trading & derivatives at Charles Schwab. Wall Street now projects that overall S&P 500 company earnings for the quarter fell 2.6 per cent from a year earlier, according to FactSet.
The Dow Jones Industrial Average gained 64 points, or 0.2%, to 26,917.
On the flip side, drugmakers such as Merck & Co Inc and Pfizer Inc dropped following the news, and the Nasdaq biotech index was down 1.5 percent.
Gold prices inched higher on Friday as investors shrugged off concerns that stronger-than-expected consumer inflation in the United States could influence the US central bank's decision on aggressive monetary policy easing.